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Wal-Mart Keeps Its Head Up
In Brazil, Despite Heavy Losses

By

Matt Moffett and

Jonathan Friedland Staff Reporters of The Wall Street Journal

Updated June 4, 1996 12:01 a.m. ET

SAO PAULO, Brazil -- When Wal-Mart Stores Inc. started operations here just one year ago, there were bold predictions of a retail revolution bursting upon Latin America's largest market. Instead, the Brazilian venture is proving to be a red-ink bath for the mighty U.S. discounter.

Though it's still early in Wal-Mart's Brazilian foray, the Bentonville, Ark., retailer has been posting wider-than-expected losses, resulting from a ruthless price war with well-established local competitors. "Wal-Mart was very arrogant to...